For investors seeking momentum, Schwab Short-Term U.S. Treasury ETF (SCHO - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 1.2% from its 52-week low price of $49.42/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SCHO in Focus
SCHO targets the short end of the yield curve, holding 102 bonds in its basket. It has a weighted average maturity of 2 years and effective duration of 1.9 years. It is one of the popular and liquid ETFs in the Treasury space with AUM of over $4.8 billion and average daily volume of around 830,000 shares. The product charges 6 bps in annual fees and has 2.51% in 30-day SEC yield (see: all the Government Bond ETFs here).
Why the Move?
The Treasury corner of the fixed income world has been an area to watch lately given a dovish Fed. The central bank holds interest rates steady in the latest FOMC meeting and signals patience on future interest rate hikes.
More Gains Ahead?
Currently, SCHO has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook, suggesting that the fund might not continue its outperformance in the months ahead. However, a low weighted alpha of 0.80% and a low 20-day volatility of 1.53% of 1.53% shows that there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, Schwab Short-Term U.S. Treasury ETF (SCHO - Free Report) is probably on radar now. The fund just hit a 52-week high, and is up 1.2% from its 52-week low price of $49.42/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:
SCHO in Focus
SCHO targets the short end of the yield curve, holding 102 bonds in its basket. It has a weighted average maturity of 2 years and effective duration of 1.9 years. It is one of the popular and liquid ETFs in the Treasury space with AUM of over $4.8 billion and average daily volume of around 830,000 shares. The product charges 6 bps in annual fees and has 2.51% in 30-day SEC yield (see: all the Government Bond ETFs here).
Why the Move?
The Treasury corner of the fixed income world has been an area to watch lately given a dovish Fed. The central bank holds interest rates steady in the latest FOMC meeting and signals patience on future interest rate hikes.
More Gains Ahead?
Currently, SCHO has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook, suggesting that the fund might not continue its outperformance in the months ahead. However, a low weighted alpha of 0.80% and a low 20-day volatility of 1.53% of 1.53% shows that there is definitely still some promise for risk-aggressive investors, who want to ride on this surging ETF.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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